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Sourcing Strategy: Effective vs Efficient with Ron Crabtree. Joe Lynch and Ron Crabtree discuss sourcing strategy: effective vs efficient. When developing a sourcing strategy, the focus can be effectiveness (gaining desired results) or on efficiency (reducing cost, labor, and resources used). About Ron Crabtree. Ron Crabtree.
Global supply chains have been tested repeatedly by a series of disruptive events, including the COVID-19 pandemic, U.S.-China Companies that previously prioritized cost-cutting and centralized sourcing quickly found themselves exposed to serious production and distribution risks. China trade disputes, and natural disasters.
A data gateway is essentially a connective tissue across your supply chain, providing unified access to supply chain data from various sources, including enterprise systems, data feeds, data warehouses, data lakes, data marts, and business entities. Achieving these goals requires visibility into the entire supply chain.
The key to this lies with sourcing. Before diving further, let us define what sourcing is. Sourcing is the practice of finding and selecting suppliers for a range of services (e.g., Traditional sourcing practices tend to be highly manual and are fraught with latencies and inefficiencies. Digitalizing sourcing (i.e.,
A data gateway is essentially a connective tissue across your supply chain, providing unified access to supply chain data from various sources, including enterprise systems, data feeds, data warehouses, data lakes, data marts, and business entities. Achieving these goals requires visibility into the entire supply chain.
Companies use risk management software , like the Interos solution, to monitor and analyze supplier risk events in real time. These are big data platforms that monitor news sources and assorted databases from governments, financial institutions, ESG NGOs, and other sources to detect when an adverse event has occurred or may be about to occur.
Companies must harness a wide variety of data structures and formats, spanning internal and external sources. of events and respond accordingly. Clarity of Impact: Context helps planners understand the significance of an event. While the abundance of data is seen as an asset, the real question is: What do you do with it?
They can ingest large volumes of functional data and leverage advanced intelligence to recognize broad trends and specific disruptive events. Human workers at the warehouse, for example, are guided by these AI agents, or co-pilots, as they complete their daily work via a user-friendly interface. billion to $23.07
The resilience of your supply chain is determined by its structure and operations, whether we’re dealing with major immediate events like a pandemic or gradual systemic changes to your business environment over time. Once this exercise is completed, your company can then assess the risk from tier-two suppliers onwards.
For example, an ERP for automotive distributors needs to include not just a standard sales function but also allow for automotive-specific processes like call-offs and contract pricing, as well as other processes like returns and lot traceability.
What Celanese has accomplished is the single best example ARC is aware of employing agentic AI and copilots at scale. The occurrence of any of these events disrupts the global supply chain and can deeply impact profitability. One event could create so much churn, Mr. Al Syed explained. Celanese is an exception. Celanese has 2.5
An iGPU (integrated graphic processing unit) is a current example. We have all the connected planning data we get from blue Yonder, all of the product data we get from the product systems, all of the shipment information that’s coming in from the carriers, as well as risk information from Everstream and other sources.
The toilet paper shortage was one of the COVID era events that taught people what the term “supply chain management” meant. In warehouses, for example, one solution is labor management. Multinationals knew that events could occur that could cost them tens, or hundreds of millions of dollars.
Image source: Pexels | 7 Cost-Saving Tips Every Supply Chain Manager Should Know Managing costs effectively is crucial for success in the competitive supply chain world. Example: Retail giant Zara uses real-time data from its stores to adjust inventory dynamically. Track these metrics to identify trends and address issues proactively.
Discover capability gaps and create sourcingevents Seek and discover what capabilities the organization may be lacking, such as vulnerabilities or inefficiencies in transportation or supplier capacity. By identifying these gaps, you can create sourcingevents to close them.
For example, if an employee works 40 hours at regular pay plus 10 hours of overtime, they will not pay federal income tax on those overtime hours. This is particularly important during periods of heightened security needs, such as holidays, major events or during peak business seasons.
Here are some examples of such use cases. Building optionality in the supply chain through collaborative sourcing: Supply chain teams can proactively identify choke points within the existing network by leveraging emerging technologies such as digital twins and advanced analytics, and modeling their end-to-end supply chains.
These solutions use natural language processing, for example, to read online publications and other data sources, make sense of what they read, contextualize the data into information, and report supply chain disruptions caused by weather, geopolitical events and other hazards in near real-time.
As organizations look for reducing dependencies on concentrated sources of supply, Eastern Europe, Mexico, and South Asian countries will start providing viable alternatives to the current manufacturing powerhouse countries. American Supply Chain Resilience Act and the German Supply Chain Act are just two examples of this.
By harnessing data from various sources, businesses can gain insights into customer preferences, peak delivery times, and route efficiency. For example, if delivery times consistently exceed targets, further analysis may reveal specific routes that require optimization or additional resources.
Edge Hardware: The battle for edge hardware also intensified in 2024, as companies sought to deploy AI capabilities closer to the source of data. OpenAI’s “12 Days of OpenAI” event showcased its continued efforts to enhance its competitive position in the AI market. billion in funding.
If we’re going to be able to prepare for these types of events in future, we have to identify appropriate sources of information that we should focus on all the time — not just when [crisis] manifests,” said Randy Bradley, associate professor of information systems and supply chain management at the University of Tennessee. .”
As an example, a major retailer whose market presence is in the Americas realized that several of their shipments that originate in China pass through Russia to make their way to the west and are now subject to shipment backlogs. Some may have believed themselves to be immune at one point, but now their perspective is shifting.
At the same time, the Chief Purchasing Officer (CPO) has taken on a pivotal role by securing Personal Protective Equipment (PPE) to protect the workforce and direct materials when primary sources fail. As disruptions become the norm, Supply Chain Planning and Source-to-Pay (S2P) cycles need to be increasingly dynamic and intertwined.
But for that special class of disruption, the low-probability, high-impact events like natural disasters, epidemics and other upheavals, organizations don’t know how to mitigate the risk and successfully manage their supply chains, and are now trying to find their way through the minefield of issues and challenges with no clear solution.
The expansion, examples and explanations are my interpretation. One key indicator – if you have put in a technical solution (like “standard work” or “5S” for example), but then seen it erode, then you are probably in adaptive territory. A new ERP system is a prime example. Whose Work Is It?
Manufacturing companies that have relied on China for production materials are feeling the blowback of this dependence; some retailers source more than half their inventory from China, according to 2020 Statista data. And “it’s a great tool,” but there are more sophisticated, more accurate tools to do sourcing.
Increasingly, forecasts are being improved by leveraging outside data sources rather than merely relying on a company’s internal historical shipment data. Machine learning also makes it possible to make more granular forecasts – for example, instead of forecasting demand for the company’s products in the Eastern Region of the U.S.,
Secretary of Defense Robert Gates was the main guest at the event and had a different threat in mind. One major example is semiconductors. It’s worth even checking where/how companies’ main factories are doing sourcing from and de-risking sourcing by switching (if possible) to areas where threat levels are much lower.
Digital commerce efficiently requires the digitalization of many customer-facing operations and sourcing and procurement. Supply chain planning involves interaction with different types of information based on internal and external data sources. These data sources are often spread across multiple platforms and come in various formats.
It’s good to see these companies recognizing the impact of climate change, and changing their policies, sourcing, and manufacturing practices to reduce emissions. These come from using gasoline for driving a car or coal for heating a building, for example. Agriculture, oil and gas operations are major sources of methane emissions.
MODEX 2024, held in Atlanta, Georgia, from March 11 to 14, attracted more than 35,000 attendees and featured over 150 educational sessions, keynote speakers, and networking events. Here are some of the examples that caught our attention. They can also work alongside humans or independently, depending on the task and the environment.
Inventory, storage facilities, transportation assets, energy provisionall of these things have conventionally been sourced through capital spending, leaving many companies with phenomenal sums of money sunk into capital investments. Still, thats all the more reason for companies to think differently about supply chain operations.
On the breadth dimension, we have a spectrum that includes point solutions out to alerts over a much broader range of events. One example is an alert that a truck will be late based on a GPS feed. Four Kites and Descartes are examples of software companies whose solution provides this type of alert. – mentioned above.
Companies can also test-drive their supply chains by introducing the uncertainty of events that are difficult, if not impossible, to predict with accuracy. These events can range from minor supply disruption or canceled shipments to significant black swan events. suppliers impact your ability to deliver.
Digital twins bring enterprise-level visibility to network planning, allowing organizations to simulate new fulfillment strategies, evaluate sourcing risks, and prepare contingency plans that support both customer experience and bottom-line resilience. Heres how the concept plays out in real-world logistics: 1.
Risk events that happen in one part of the supply chain can cause a disruptive effect that is amplified multi-fold given the complex connectivity of labor, raw materials, and capacity. The bullwhip effect is one example of this disruptive effect, when small changes in demand cause huge demand spikes downstream.
Examples of automation range from a household thermostat to a large industrial control system, self-driven vehicles, and warehousing robots. Examples are industrial robots and multipurpose CNC machines. For example, full warehouse automation to support event-driven, mission-critical system delivery.
Everything from contrast dye, to tubing, to medical devices with embedded semiconductor chips would suddenly become difficult to source. Buying organizations use this technology to monitor and analyze supplier risk events in real-time. I don’t need to know about Tier 2 events for my market suppliers. I have 1000s of them.
Lead time measurement begins at the moment an internal or external customer places an order to the moment of final delivery to that customer and includes activities such as: Order processing Raw material sourcing Manufacturing Transportation Delivery of the product to the customer. Why is lead time important?
A data warehouse, like Wavelytics’ Data Factory, works to connect to your existing systems and bring all of your data together under one roof, creating a single source of truth that provides your business with a significant edge over competitors still struggling with fragmented information.
MassRobotics announced (May 18th) the release of what it claimed to be the “ World’s First Open Source Autonomous Mobile Robot Interoperability Standards.” One type of bot will work on its own use case, for example, pallet movements, while two or more other types of bots will work on use cases interchangeable between them.
Risk management solutions scrape data from hundreds of thousands of online & social-media sites, but Autoliv also has access to sources of information that they pay for. They wanted these diverse sources of information pulled together in one central, user-friendly location they call their “garage.” And we are making progress.
A good KPI dashboard can show you for example, the difference between planned and actual kilometers for each route. It also allows them to communicate proactively with customers in the event of vehicle maintenance issues, heavy traffic, or other conditions that might delay delivery.
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